Laxmi Organic Industries (LXCHEM IN) – Q1FY27 Result Update – Higher realization drives sequential performance – REDUCE
Published on 30 Jul 2026
Laxmi Organic Industries (LXCHEM) reported consolidated revenue of INR9.7bn in Q1FY27, up 40% YoY and 32% QoQ, driven by ~10% volume growth and ~30% growth from higher realizations and an improved product mix. The Essentials segment contributed 75% of topline and grew 50% YoY, with EBITDAM expanding 940bps YoY, supported by Ethyl Acetate spreads reaching a 12-year high of USD215/tn during the quarter. However, spreads have started moderating since May'26 and are expected to normalize further as the West Asia conflict eases. The Specialty Chemicals segment reported 17% YoY revenue growth, while EBITDAM contracted 310bps YoY due to lower raw material prices. Management indicated that input costs in the Specialty business have started rising, the company continues to expect the Fluorochemicals business to achieve full ramp-up during FY27. In addition, the newly commissioned Ethyl Acetate capacity at Lote is expected to drive volume growth, while Dahej Phase II remains on track and is likely to commence commercial contribution from Q4FY27, with a gradual ramp-up through FY28. At the current market price, the stock trades at 28x FY28E EPS. We value the company at INR182/share based on our SOTP valuation and maintain our 'Reduce' rating on the stock.
